A HAMPSHIRE retail park has been acquired for almost £13 million by a local council.

Eastleigh Borough Council is the new owner of Chestnut Avenue Retail Park in Chandler’s Ford, which is fully occupied by Aldi, American Golf, Dreams and Poundstretcher.

Paloma Capital, a private equity real estate investor acting on behalf of Paloma Real Estate Fund I, was the seller, having bought the retail park as part of a portfolio of properties in January 2016.

The £12,850,000 acquisition was negotiated by Vail Williams on behalf of the council and followed comprehensive refurbishment of the former Homebase store at a for Aldi and Poundstretcher by Paloma Capital at a cost of £1.8m.

Eastleigh Borough Council leader Keith House said: “This acquisition of Chestnut Avenue Retail Park demonstrates the Council’s continued commitment to invest in the borough with the intention of encouraging regeneration, helping to protect and create local jobs and generating income to help support council services.”

Russell Miller, a partner at the Southampton and Portsmouth offices of Vail Williams, said: “A number of local authorities are drawn to similar property assets because regular income streams can help fund services challenged by cuts in public expenditure from central government.”